Managing Refurbishment Projects Through Selection of Procurement System: The Case of Malaysia

Abstract

This study conducted to identify the types of procurement methods used in Malaysian refurbishment projects and what are the problems and difficulties encountered by contractor using different types of procurement systems. On top of that, the study also would examine relationship between challenges encountered by contractors using different types of procurements towards refurbishment projects performance. Triangulation technique was used in the study. The findings shown that 54.3% of the projects were used traditional procurement systems, 39.9% using design and build, 4.3% using management procurement, 1.1% of the refurbishment project using turnkey system and 0.3% using built-operate-transfer system. Refurbishment projects using traditional procurement systems were performing well compared to the others. Besides, out of seven contractor challenges variables which are cash flow and financial, communication with client and consultants, client decision making, frequent change order by client, insufficient or discrepancies of contract documents, material price escalation and skill, expertise and experience tested were significantly correlated with at least one performance variable.